Future Planning

8 Ways Any Millennial Can Be a Millionaire in 5 Years

Hustle, thrift, and perseverance combined are a potent financial force.
BY Entrepreneur TIMEApril 27, 2022 PRINT
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Millennials are hitting the workforce in large numbers each year, facing challenges as they do so. A research from USA Today reveals that millennials earn 20 percent less than their parents did at the same age, even once they have a college diploma in hand. This, combined with heavy college loan debt, has forced many graduates to give up on their fantasies of owning multimillion-dollar homes on every coast or driving a luxury automobile to the office each day.

But an overflowing bank account isn’t out of reach for every millennial. In fact, there are plenty of millennials who will take the same route Mark Zuckerberg and Snapchat’s Evan Spiegel took. Here are eight things millennials can do to have a shot at becoming multimillionaires in five years.

Start a Business

This option gives you the best odds of becoming a multimillionaire in the future, but success is obviously not guaranteed. A winning idea is, of course, a very important ingredient, but you should also know other things you’ll need to do to improve your odds of success. Above all, be prepared to put in years of hard work and overcome multiple obstacles before you achieve your dreams.

Find a Mentor

Some of the most successful people in business today will readily admit that outstanding mentors played a significant role in their career growth. Studies connect mentorships to a surprising number of success stories.

Find someone who has achieved the type of success you hope to earn someday and ask for the opportunity to learn from that person. Their insight and experience may make the difference that helps separate you from other millennials looking to succeed.

January being Mentoring Month is a good opportunity to explore how a mentor can help you improve in your work life, school life, or personal life in the coming year. Consider that not only someone you can directly meet with in person can serve as your mentor, but also historical figures from the past. (Lisa F. Young/Fotolia)
A mentor can give you practical knowledge and advices. (Lisa F. Young/Fotolia)

Develop a Product

In today’s Shark Tank-Kickstarter environment, it’s possible to invent a product concept, create a prototype, and get funding to begin manufacturing and distribution. There are multiple ways to approach taking your idea from concept to reality, but you’ll give yourself a great head start if you create something that is inexpensive to produce.

Take Over an Existing Business

Why start at the beginning when there are existing businesses that need ownership? Search for a business with an owner who may be interested in retiring or who is actually ready to move on. Be prepared to work with the business for some time before eventually offering to take it over. If you have difficulty locating one, a business broker can help you identify the perfect business to suit your personal and professional interests.

Invest

Investing can be tricky, but it’s one of the best ways to get a return on the money you currently have. If you want to make significant money quickly, you’ll need to take some major risks, which means being willing to lose all the money you put in.

For best results, start by investing a good amount of money. You can make more potentially if you risk more. Pick certain sectors that you find yourself most interested in and concentrate on investments in those spaces. Before any of this though, take time to learn as much as possible about the stock market.

Save

With the nearly nonexistent interest rates on savings accounts today, you likely won’t see the money you put into the bank multiply. However, if you make significant sacrifices, such as living at home with your parents, working multiple jobs, or sharing a place with one or more roommates, you may be able to set aside a considerable part of your salary each month.

Like my mom always said, you can’t save much money if you’re busy spending it just to live. If you conserve over time, you’ll have a nest egg you can put toward investing or purchasing rental property that can more rapidly multiply your monthly income.

Piggy bank
You need saving to invest your business. (maitree rimthong/Pexels)

Start a Side Hustle

If you need the security and benefits that come with a salaried position, a side job may be a great way to generate extra income. This could be something as simple as delivering pizzas or bartending or something as complex as starting your own business on the side. The former can bring immediate cash, but the latter can give the long-term benefit of eventually being able to turn it into a full-fledged business.

Boost Your Salary

The key to successful saving and investing is to first bring in the best income possible. Don’t settle for a substandard salary. Look at the market rates for your skills in your area and make sure you’re at least within the range. If not, search for a different job with people who will appreciate your education and experience. Learn top salary negotiation strategies to get the most out of every job offer.

With hard work and sacrifice, millennials can significantly increase their income over just a few years. While there’s no guarantee of becoming a multimillionaire, it’s well worth the effort. If you don’t succeed in that timeframe, at least you’ll have a good start at becoming a multimillionaire in the years that follow.

The Epoch Times Copyright © 2022 The views and opinions expressed are only those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.

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